Titan Industries Limited

Delivering value by creating Brands

Disclaimer
Certain statements are included in this release which contain words or phrases such as will, aim, will likely result, believe, expect, will continue, anticipate, estimate, intend, plan, contemplate, seek to, future, objective, goal, project, should, will pursue and similar expressions or variations of these expressions that are forwardlooking statements. Actual results may differ materially from those suggested by the forward-looking statements due to certain risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to implement our strategy successfully, the market acceptance of and demand for our products, our growth and expansion, the adequacy of our allowance for credit to franchisees, dealers and distributors, technological changes, volatility in income, cash flow projections and our exposure to market and operational risks. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what may actually occur in the future. As a result, actual future gains, losses or impact on net income could materially differ from those that have been estimated. In addition, other factors that could cause actual results to differ materially from those estimated by the forward-looking statements contained in this document include, but are not limited to: general economic and political conditions in India and the other countries which have an impact on our business activities; inflation, unanticipated turbulence in interest rates, foreign exchange rates, the prices of raw material including gold and diamonds, or other rates or prices; changes in Indian and foreign laws and regulations, including tax and accounting regulations; and changes in competition and the pricing environment in India. The Company may, from time to time make additional written and oral forward-looking statements, including statements contained in the Companys filings with SEBI and the Stock Exchanges and our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company, to reflect events or circumstances after the date thereof.
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How It All Began

2009: Helios 2007: Eyewear 2006: GoldPlus 2005: Precision Engineering (PED) 2008: Zoya 2010: Fastrack Accessories

2003: Fastrack

1998: Sonata Launch 1996: Tanishq 1994: Timex JV 1993: Europe Foray 1987: Launch of Titan watches 1984: Conceived

Successful Brands
Luxury Premium

Mid Market

Mass Market

Indias Largest Specialty retailer

Luxury
2 14

Premium
317

Mid Market
125 325 64

185

Mass Market 30

737 exclusive stores

149 Towns

925,000 sft of retail space

Also has international operations

Kuwait - 45 Iran- 41 Pakistan- 62 Nepal - 30 Brunei- 10 Bangladesh - 70 Thailand- 21

Qatar - 52 Bahrain - 57 Ghana - 5 Nigeria- 10 Saudi Arabia - 642

Vietnam- 95
Malaysia- 92 Singapore - 44 UAE- 120

Ethiopia 11
Uganda - 15 Djibouti - 1

Sri Lanka- 67

Oman - 97 Kenya - 23 South Africa Maldives - 15 Yemen - 15 Mauritius- 17 Fiji- 4

1600 outlets

Where We Stand Today

Worlds 5th largest Watch Manufacturer 65% market share in organized watch market Sonata: Indias largest selling watch brand Tanishq: Indias leading Jewellery Player and a game changer Titan Eye+: Indias largest retail chain in eyewear Strength in Retail: Over 700 stores Distribution: More than 11,000 Multi-brand outlets

Watches Division

Watches
Four major brands Sold through
Exclusive World of Titan outlets Fastrack outlets Multi-brand outlets Helios Multi-brand dealers and stores Roorkee Pantnagar Dehradun

Large-format stores like Shoppers Stop, Lifestyle, etc.

Large network of exclusive service centers Sophisticated Design & Development Center
Core strength in Industrial, Retail and Graphic design Numerous international award-winning designs to its credit

Goa
Hosur

Manufacturing & Assembly facilities

Watches Distribution
Retail All India World of Titan Fastrack Helios Service Centres International
11000 dealers 2500 towns 317 showrooms 6 added in H1 130 towns 322k sft 64 stores / kiosks 17 added in H1 27 towns 28k sft

14 multi-brand stores 8 added in H1 9 towns 25k sft

745 outlets 345 towns 1600 outlets 26 countries
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Jewellery Division

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Jewellery
Three major brands Tanishq, GoldPlus and Zoya
Largest jewellery retailer in India Manufacturing facilities in Hosur and Dehradun Innovative Services Golden Harvest / Future scheme, gift vouchers, gold exchange schemes and made to order facility Loyalty Programmes - Anuttara & Ananta Customer First and Lean initiatives in manufacturing and retailing

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Jewellery Distribution

Tanishq

127 stores including 2 Zoya stores 5 added in H1 356k sft 64k sft added in H1 78 towns

GoldPlus

30 stores 1 added in H1 58k sft 8k sft added in H1 30 towns

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Eyewear & Precision Engg. Division

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Eyewear
Indias largest optical retail chain 185 retail outlets across 62 towns 35 outlets added in H1 State of the art eye-testing facilities Lens manufacturing facility Products include frames, sunglasses, contact lenses, ready readers, lens cleaning solutions and other accessories Three in-house brands Titan, Eye+ and Dash Several international and luxury brands Key differentiators Style consultants, Zero-error prescription, free eye testing, scratch-resistant lenses, lens accuracy certificate
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Precision Engineering
Leverages engineering capabilities B2B business balances risk of B2C businesses
The Opportunity
India growing as a manufacturing base for precision products Cost pressures and offset requirements guarantee a long term opportunity High cost of switching for customers Large & growing market: US$ 32 billion globally

Catering to

Clients include

Aerospace industry Automotive Industry Oil Exploration & Production Machine building and Automation Business

Eaton, US Hamilton Sunstrand, US Microtechnica, Italy Pratt & Witney, US Ford, UK Bosch, India Timken, India
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Q2 Performance

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Q2 - Background
High inflation coupled with rising interest rates leading to slowdown in economys growth Sharp depreciation of the Indian Rupee in August and September affects input costs Significant volatility in gold prices affects gold volumes however outlook for Q3 looking better with softening of gold price from end September Diamond prices continue to be high affecting studded share Company focus on retail network expansion continues 51 outlets and 67k sft added in the quarter across divisions

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Q2 - Retail growth
Growth Like to Like Growth

World Of Titan Tanishq Goldplus Helios Fastrack Zoya LFS Watches Titan Eye+

20% 39% 44% 4 times Doubled 45% 52% 16%

16% 31% 49% 10% 72% 45% 24% -19%

Growth in Titan Eye+ is below previous year levels as the seasonal promotion in the previous year happened in Q2 while it happened in Q1 the current year

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Company Performance
Q2 Performance
2500 2000 Rs. crores 1500 1000 500 0 Sales Q2 2010-11 PBT Q2 2011-12 PAT 171 210 128 148 1551 2125

Revenue growth -37% - growth slower due to high gold prices and economy PBT growth - 23% PAT growth 16% - lower due to tax provision of prev year for Rs 5 cr

H1 Performance
5000 4000 Rs. crores 3000 2000 2811 4173

Revenue growth - 48% PBT growth - 45% PAT growth 40%

279 406 209 292 PAT

1000
0 Sales H1 2010-11

PBT H1 2011-12

Company Capital Employed

1600 1400 1200 1000 Rs. crores 800

1338 1095

627
600 400 200 0 Watches Jewellery Mar-11 Others Sep-11 Corporate Company

378

451

505

114 134

98

126

Cash balances to the extent employed in segments hitherto reported in Corporate segment has been considered as segment assets Higher inventory levels contribute to increase in Capital employed
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Watches Performance
Q2 Performance
500 417 359

400
Rs. crores

300
200 100 0 77 67

Volume growth -19% Revenue growth - 16% PBIT lower due to material cost increases not passed on and higher investment in brands

Sales
Q2 2010-11 Q2 2011-12

PBIT

H1 Performance
800 700 600 500 400 300 200 100 0 733 614

Rs. crores

Volume growth - 18% Revenue growth - 19%

120 115

Sales H1 2010-11 H1 2011-12

PBIT

Jewellery Performance
Q2 Performance
2000
Rs. crores 1500 1000 500 0 Sales Q2 2010-11 Q2 2011-12 PBIT 103 150 1127 1631

Grammage growth -3% Studded share 28% Revenue growth - 45% PBIT growth 46%

H1 Performance
3500 3000 2500 2000 1500 1000 500 0 3278 2079

Grammage growth - 21% Studded share 25% Revenue growth - 57% PBIT growth 79%
172 308 PBIT H1 2011-12

Rs. crores

Sales H1 2010-11

Eyewear & PED Performance

Q2 Performance
80
60 Rs. crores 40 20 0 -20 Sales Q2 2010-11 -5 PBIT -1 Q2 2011-12 56

65

Revenue growth -16% Eyewear Revenue growth 36% Loss lower than previous year

H1 Performance
200 150 Rs. crores 100 50 0 143 110

Revenue growth 30% Eyewear Revenue growth 31% Order backlog for PED good

-50

Sales H1 2010-11

-3 PBIT -5 H1 2011-12

Market Cap Where do we stand?

Cr.
Crossed US$ 4 Billion

Market Cap
25000 20000 19247

16900 15000
10000 5000 500 0
2003-04 2004-05 2005-05 2006-07 2007-08 2008-09 2009-10 2010-11 Oct-11

8132 3530 1018 4400 5038 3462

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Recent Recognition
Corporate
Great Place to work award-15th overall position and 1st in retail India Retail Forum - Bhaskar Bhat won the Most Admired Retail Professional Award

Watches

Watch World Awards Purple by Titan wins the Best TV Campaign for the Year Economic Times - Brand Titan ranked 73 amongst top 100 brands in the country

Jewellery

India Retail Forum - Tanishq was awarded the Most Admired Retail Brand 2011 in the Luxury segment CMO Asia Awards - Tanishq wins 4 awards including the Best Wedding Campaign of the Year QIMPRO awards 2 awards for Best innovation in Jewellery manufacturing
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Whats the Future?

Targeting significant growth in revenue to cross Rs. 14,000 crore by 2014-15 making us a US$ 3 billion company Huge opportunity in International Markets Leverage Titan brands for expansion into other categories Opportunity in Jewellery: Over Rs. 100,000 crore market Eyewear Rapid expansion of our world-class Titan Eye+ stores to dominate the optical industry in India

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Thank You

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